California Water Service Group · NYSE:CWT
California Water Service — Q1 2024 Earnings Presentation
15 slides from California Water Service's earnings presentation, Apr 25, 2024
Slide 1: First Quarter 2024 Earnings Results Presentation
First Quarter 2024 Earnings Results Presentation April 25, 2024 0
Slide 2: Today's Participants
Today’s Participants Marty Kropelnicki James Lynch Greg Milleman Chairman & CEO Sr. Vice President, CFO & Treasurer Vice President, Rates & Regulatory Affairs INVESTOR RELATIONS 1
Slide 3: Forward-Looking Statements
Forward-Looking Statements This pr esentation contains for ward-looking statement s within the meaning establish ed by th e Private Securities Litigation Refor m Act of 1995 (“PSLRA”). The forward -looking statem ents ar e intended to qualify under pro visions o f the federal securities la ws for “s
Slide 4: First Quarter 2024 Highlights
First Quarter 2024 Highlights Strong operating performance highlighted by resolution of the 2021 California Water Service (Cal Water) General Rate Case and Infrastructure Improvement Plan (2021 GRC) • Authorization to invest $1.2 billion in water system improvement projects (2021-2024) • Adoption of
Slide 5: Financial Results: First Quarter 2024
Financial Results: First Quarter 2024 (Reflects regulatory approval of Cal Water’s 2021 GRC) First First (Amounts are in millions, except for EPS) Quarter Quarter Variance 2024 2023 Operating Revenue $270.7 $131.1 106.5% Operating Expenses $192.9 $148.6 29.8% Net Interest Expense $15.0 $12.0 25.0% N
Slide 6: EPS Bridge First Quarter 2023 to First Quarter 2024
EPS Bridge First Quarter 2023 to First Quarter 2024 (Reflects regulatory approval of Cal Water 2021 GRC in First Quarter 2024) $1.70 $0.19 $1.50 $0.17 $0.03 $1.30 $1.56 $0.03 $1.21 -$0.13 $1.10 -$0.16 -$0.04 -$0.04 $0.90 $0.70 $0.50 $0.30 $0.10 -$0.40 -$0.10 -$0.30 -$0.50 INVESTOR RELATIONS 5
Slide 7: Capital Investment and Depreciation
Capital Investment and Depreciation 5-Year Historical Capital Investment and Depreciation (in $M) Capital Investment $450 $400 $384 **$380 Cap Ex Target $350 $328 $299 $293 $300 $274 $250 $200 $150 2024 estimated $ 1 15 $ 1 24 depreciation $132M $100 $ 1 09 $99 $89 $50 $0 2019 2020 2021 2022 2023 *2
Slide 8: Estimated Regulated Rate Base of CWT
Estimated Regulated Rate Base of CWT (in billions) $3.0 $2.47 $2.36 $2.5 $2.20 $2.01 $2.0 $1.87 $1.61 $1.5 $1.26 $1.24 $1.06 $1.12 $1.0 $0.5 $0.0 2016 2017 2018 2019 2020 2021 2022 2023 *2024 *2025 *2024-2025 Rate Base estimates include amounts authorized in the 2021 GRC plus estimated rate base in
Slide 9: Dividends | Cash Flow | Capital Allocation
Dividends | Cash Flow | Capital Allocation Continue to maintain financial discipline with a strong balance sheet, while allocating capital in a manner consistent with our capital infrastructure improvement plan • Increased annual dividend 7.7% from $1.04 per share to $1.12 per share. This is the com
Slide 10: 2021 GRC Resolution
2021 GRC Resolution Decision provides clarity for all stakeholders, while enabling CWT to continue to provide safe, reliable water service to customers throughout California • Final decision approved on March 7, 2024 on the 2021 GRC. • Increases adopted revenues, after corrections, for 2023 by appro
Slide 11: California Extended Water and Wastewater Arrearages Payment Program
California Extended Water and Wastewater Arrearages Payment Program Proactively sought funding to assist our customers • $83 million will be applied to past-due balances accrued by residential and commercial customers between June 16, 2021, and December 31, 2022 during the COVID-19 Pandemic. • Refle
Slide 12: Investments in PFAS Treatment
Investments in PFAS Treatment Group believes it is well-positioned to meet the EPA’s new PFAS regulation • Cal Water, Hawaii Water Service (Hawaii Water), New Mexico Water Service (New Mexico Water), and Washington Water Service (Washington Water) have a rigorous, coordinated water quality assurance
Slide 13: Greenhouse Gas Scope 1 and 2 Reduction Targets Set
Greenhouse Gas Scope 1 and 2 Reduction Targets Set Group Continues to Make Progress on ESG • Group has committed to reducing absolute Scope 1 and 2 GHG emissions by 63% by 2035 from a 2021 base year. • Target is science-aligned. • Group expects to achieve these reductions through a multi-pronged app
Slide 14: Q1 2024 Key Messages
Q1 2024 Key Messages Resolution of the 2021 California GRC Issuance of new EPA PFAS regulation $83 million in additional state funding to relieve California customers of past-due balances accumulated during the pandemic Commitment to reducing absolute Scope 1 and 2 GHG emissions by 63% by 2035 Focus
Slide 15: California Water Service Group
CALIFORNIA WATER SERVICE GROUP Lar i vestiNe FOR LIFE
California Water Service Group — Q1 2024 Earnings Presentation on 6ix